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Kanva case: Police write to Cooperation Department

Seek custody of Kanva Group chairman and managing director N. Nanjundaiah

The Basaveshwara Nagar police has written to the Cooperating Department, Government of Karnataka, seeking additional information in connection with the alleged cheating case against Sree Kanva Souharda Cooperative Credit Limited. This comes in the wake of several customers approaching the police claiming to have been duped of several lakhs of rupees.

On Friday, the police had arrested the chairman and managing director of the Kanva Group of companies N. Nanjundaiah after three investors accused him of not returning their investments. On Saturday, another 17 people who had deposits in Sree Kanva Souharda Cooperative Credit Limited approached the police seeking help to withdraw their money.

A senior police official told The Hindu that the police have sought details such as when the co-operative body was registered, whether it was functioning legally, and what provisions were in place to receive deposits.

“After we receive a reply from the Cooperation Department, we will write to the Reserve Bank of India (RBI) about this,” said the police official.

The company reportedly informed the police that the cooperative society is financially stable, and that the anxiety among depositors is unwarranted.

“We have received more complaints from people who have deposits and want to withdraw the same. We are investigating the case. Nothing can be said at this stage about what went wrong,” the police official added.

The police are seeking custody of N. Nanjundaiah, who was remanded in judicial custody on Friday.

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